MN Revenue Cert of Exemption - Laserfiche WebLink

Home Browse Search

"INNESOTA• REVENUE Motor Vehicle Towing, Washing, Rustproofing ww vlrevenue.state.mn.us Motor vehicle towing, washing, and rustproofing services are taxable. Purchases of certain items used or consumed in providing these taxable services are exempt. This exemption is explained on page two. Motor vehicle means any self-propelled vehicle required to be licensed for road use and any vehicle propelled or drawn by a self-propelled vehicle required to be licensed for road use. It includes vehicles such as cars, vans, pickups, trailers, and motorcycles. It does not include snowmobiles or manufactured homes. Services Towing services The total price charged for towing a motor vehicle is taxable, including administrative fees relating to the service. For example, if car towing includes charges for calling authorities, check cashing, completing in- surance forms, etc., the total amount billed is taxable even if the charges are separately stated on the cus- tomer's bill. Whenever possible, separately state the charge for sales tax on customer billings. The custom- er must be aware of the fact that sales tax was paid; therefore, if tax is not stated separately, the invoice must note that tax is included. Taxable motor vehicle towing includes: • towing, pulling, or transporting motor vehicles on a flatbed truck to a repair shop, to the owner's home or business, or to any other location • towing snowbirds and other illegally parked motor vehicles to impound lots • pulling oi• winching cars oi• other motor vehicles out of ditches • recovery services, such as uprighting overturned semi tractors and trailers or other motor vehicles Nontaxable services include: • decking or stacking • delivering fuel to stranded motorists • jump starting vehicles • roadside repair • tire repair or other repair services on the road • towing construction equipment or other equipment or machines that are not licensed for road use • towing boats • towing farm tractors or farm wagons • towing auto hulks Sales and Use Tax Division —Mail Station 6330 — St. Paul, MN SS 146-6330 Phone: 6S1-296-6181 or 1-800-657-3777 Minnesota Relay (TTl� Ill Email: salesuse.tax a state.mn.us Motor vehicle cleaning, rustproofing and undercoating services Taxable services include: • applying fabric protector • cleaning services, interior and exterior • coin -operated car washes and vacuums • rustproofing • undercoating • vacuuming • washing • waxing Applying paint sealer is not a taxable service unless it is part of the initial sale of a taxable product. Paint seal- ing materials may be purchased exempt only if used as part of the original sale of a taxable product. Free car washes with a tank of gas or free with a coupon. The customer owes no sales tax for a free car wash. However, service providers must pay sales oi• use tax on the cost of all materials used to provide the free car wash. Charges for coin -operated car washes are taxable. Products sold through vending machines are also tax- able. Since sales tax is included in the amount charged, you must subtract sales tax from receipts to compute your sales and use tax correctly. See Fact Sheet 158, Vending Machines and Other Coin Oper- ated Devices, for more information. This fact sheet is intended to help you become more familiar with Minnesota tax laws and your rights and responsibilities under the laws. Nothing in this fact sheet supersedes, alters, or otherwise changes any provisions of the tax law, administrative rules, court decisions, or revenue notices. Alternative formats available upon request. Stock No. 2800113, Revised 2/04 Minnesota Revenue, Motor Vehicle Towing .. .